Individuals and businesses deal with significant volumes of wealth and assets. Those who wish to focus on assets and the various ways of increasing and monitoring them can opt for asset management jobs. Candidates who are more focused on the overall finances can go for a wealth management degree.
Imarticus Learning's CIBOP or Certified Investment Banking Operations Professional course offers a curriculum that includes both fields. Students can explore various options and choose their area of expertise at the end of the course.
Understanding the Difference Between Asset Management and Wealth Management
Asset management deals with the investments of a company or clients. Asset managers are responsible for the money that clients invest. Asset managers take care of all investments, helping people follow the right procedure to set up accounts and invest in the right areas.
Investors can hire asset managers to assist them in opening accounts, finding the best investment opportunities, and finally making the trades. Asset management involves extensive risk management and research.
Managers need to research the condition of stocks, bonds, mutual funds, ETFs, or other forms of investment vehicles. After analyzing the research data, asset managers can accurately predict where one should invest to get the maximum benefits. Nowadays, asset managers are also responsible for ensuring that all investments are socially responsible.
Some asset managers may work in other aspects of investment management like tax-loss harvesting. An asset manager can at times provide financial advice. Since they have expertise in investment vehicles, individuals or firms that provide ETFs, mutual funds or similar products often hire them to get a better idea of what response their products will receive.
Wealth management deals with a broader view and includes all finances of a company or individual. Wealth managers have multiple tasks. Similar to asset managers, wealth managers have to conduct a risk assessment. A wealth management course usually prepares students for this task. Wealth managers are often hired by company stakeholders or older employees who require retirement planning services. Since wealth management involves monitoring individual wealth, managers can help clients choose the right retirement benefits.
Several clients also hire wealth managers for succession planning and estate planning. Wealth management also often involves the set-up and management of trusts. People who require insurance protection can seek the assistance of wealth managers. Wealth management often includes coverage of liability issues, stock options, and tax planning.
While there are differences in the services provided by asset managers and wealth managers, one also needs to look at the various compensation models. Asset managers usually take commissions. Their fees are based on the type of assets they are managing. Wealth managers, on the other hand, charge on an hourly basis or have flat fees. However, if they too are dealing with assets, their fees may depend on the size and value of those assets.
What Can Candidates Study to Work in Asset or Wealth Management?
Both asset and wealth management has a lot of scope and aspirants can benefit from honing their skills in either field. While there are several wealth and asset management courses, Imarticus Learning's Certified Investment Banking Operations Professional course teaches students the skills necessary to land lucrative jobs. The institute organizes live lectures where candidates are encouraged to interact with peers as well as instructors.
The curriculum introduces students to financial markets. An understanding of the market trends is beneficial for both asset managers and wealth managers. Risk management is also a huge part of the course as it is extremely important for the industry. Candidates are prepared for interviews in their areas of interest and are guaranteed jobs once they graduate.
The CIBOP course doubles up as a risk management course in banking and aspirants will benefit from the industry expertise offered. Such a holistic approach increases opportunities for all those who complete this degree.